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If you need to take money out of the market, the safe place to put it now is either money markets or CD's. That is because bonds and bond funds will decline with interest rate increases. Bonds are OK if you plan to hold them to maturity. But the market value of the bonds may be down for a while.

Knowing when to take money out of the market is always difficult. You will lose some gains if too soon. You will lose some capital (at least temporarily on paper) if too late.

Because no one knows how to make these market timing decisions successfully, the Foolish philosophy is to develop a diversified collection of investments and then basically wait for markets to recover rather than try to predict market turns. The fact that managed mutual funds do worse in down markets than do index funds tells you that even the experts have trouble calling the turns correctly.
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